The president of Brazil’s Central Bank stated that the country’s sovereign digital currency pilot will begin operations this year.
The confirmation of the central bank’s digital currency came during an event on Monday, when Central Bank of Brazil President Roberto Campos Neto stated that a pilot CBDC programme might go live in the second half of this year.
The value of the upcoming CBDC would be linked to the national fiat payment system STR (Reserve Transfer System). Neto also revealed that ‘Digital Real’ would have a limited supply and that only a specific quantity of it would be created, similar to Bitcoin.
The announcement of a CBDC pilot for the second half of the year follows a month of collaboration between the central bank and nine banks to support the development of CBDCs. Brazil would join the expanding list of countries working on their own digital currency if the central bank president gave his approval.
Brazil is presently seeking to focus attention on the cryptocurrency and digitalization boom. Apart from CBDC development, Brazil presented a crypto bill in late February to govern the crypto sector. The law, which has been in the works for over three years, specifies many parts of what comprises a virtual asset (VA), a broker or exchange, and which branches of the federal government would have jurisdiction over the issue.
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